#nEWSLETTER#3 05.12.23
movingo business dispatch
All the updates in local laws & regulations are carefully curated by our legal team and sent out every 2 weeks
As MoHRE and ICP campaign on residency and labor laws continues, let’s talk about employment contracts and Emiratee’s hiring
Beware of Contract Substitution: A red flag in employment agreements

The employment contract you ask an employee to sign must contain the exact same terms and conditions as in the original job offer.

Attention: Do not ask an employee to sign a contract with different terms and conditions, even if you might think that the changes are advantageous to him. Contract substitution is illegal and this issue may be reported to the Labour Office by an employee which can lead to fines.

Somewhere in Al Quoz

Insurance Private companies in 14 key economic sectors, encompassing real estate, education, construction, and healthcare, are obligated to integrate UAE citizens into their workforce.

By the conclusion of 2023, companies employing 50 or more individuals must ensure that a minimum of 4% of their staff comprises Emiratis, with this requirement escalating to 10% by 2026.

For companies with a staff size ranging from 20 to 49 employees, the mandate dictates hiring at least one UAE citizen by the upcoming year, followed by an additional Emirati employee by 2025.
Be aware: fictitious Emiratis’ hiring is illegal and punishable by law

The instances of violations against Emiratisation norms surged to 894 cases in the latter half of 2022, with 1,267 UAE citizens reportedly hired for non-existent positions within various companies.

MoHRE has pledged stringent consequences for offenders, including both legal and administrative measures. Companies found in violation may face fines amounting to 20 thousand dirhams for each case, along with potential downgrading to the lowest category in the MoHRE’s private sector classification system.
Law No. 60 of 2023 has been officially released, introducing amendments to the Corporate Law in the UAE with a focus on multinational enterprises

Enterprise (MNE)." An MNE is defined as an entity and/or one or more of its member entities located in the UAE or a foreign jurisdiction.

Top-up Tax Rate: 15% rate is established for Multinational Enterprises.

Pending Decrees: Further decrees and decisions regarding these changes are anticipated.

Term Clarification: Although the specific terms are not outlined in the law, clarification is expected to be provided by the year 2025.

“We look forward to further strengthening our ties with Russian entrepreneurs and businesses”

Ramy Jallad, Group CEO of RAKEZ, Ras Al Khaimah Freezone

“Today, RAKEZ is home to over 900 Russian companies, spanning from innovative startups and agile SMEs to large-scale manufacturers. This growing presence reflects the trust and confidence that Russian businesses have in our dynamic economic zone. Our commitment to fostering international partnerships and facilitating cross-border collaborations remains unwavering”

Incorporating a company in the RAKEZ Freezone is easy with movingo.